How AI will transform health insurance
Calling for a more digital approach......
Technology has branched out to be more diverse and convenient than one could ever contemplate, but for industries, this development has asserted itself to be incredibly useful for reducing costs and mitigating risks. In fact, there has been no better consumer for artificial intelligence than the health industry, where AI technology is now being commonly used to improve the health & wellness of employees as well as boost workplace productivity.
When we picture a health insurer, we can only imagine mountains of paperwork and hundreds of legal and medical documentations filling up the desks of people tired with their work. Perhaps, that image was a bit exaggerated but that’s the main gist we follow to outline the health insurance industry. Insurance work requires manual exertion of labor which can often be error prone, time consuming and puts the health of the insurance worker on the line. This can also reflect back into the insurance company where they will be burdened with faulty and improper work done by their workers. Furthermore, insurance companies are more likely to suffer from fraudulent claims on insurance or incur incremental costs from risks.
However, with the implementation of AI technology, the insurance process can be significantly streamlined, leading to a more efficient, effective and even profitable working structure. Here are the benefits that an insurance company will receive from exploiting the array of features present in artificial intelligence:
1. Better Form of Risk Management
The fundamental work of insurance companies is to properly identify those insurance payers who are at-risk individuals and have the greatest probability of taking up insurance claims. This allows them to determine the correct insurance premium to be asked from such individuals so as to mitigate potential costs to the business.
Formerly, insurance companies would stick to traditional routes in figuring out the perfect amount to be given as an insurance premium to different individuals. Determining the mortality of an insurance payer used to be done through simple calculations, where the information would often not be well reinforced. The result of this was hundreds, if not thousands of dollars being expended as the cost to the insurance company. But AI has enabled such companies to properly identify which patients are liable to diseases, ailments or have a high chance of mortality. Artificial intelligence can roam through hundreds of data points and search large databases for the patient information that would help the health insurance company in assessing their cases and settling on the appropriate premiums.
2. Improve Corporate Wellness
Working in an insurance company would mean handling with constant customer queries and investing long hours of energy into helping a customer decide on their insurance plan. On top of this lies the insurmountable paperwork as well as other materials of work to be completed, where insurers can become incredibly exhausted as well as demotivated from their work. Such feelings not only adversely affect work morale but also leads to a number of mistakes made in the work itself by insurers.
With AI technology, key processes of insurance can become digitalised. Technological integrations such as chatbots or online contact forms and email lessens the burden placed on insurers on a significant extent. Furthermore, paperwork is also replaced by its digitalised version, which allows the work of processing insurance and more to become incredibly easy, convenient and organised. Thus, insurers are given more hours to be used for sectors of work which can generate greater profit for the business. This saves on time, energy as well as costs to a health insurance company, making it more efficient and effective while also retaining overall corporate wellness.
3. Easing up Work and Increasing Productivity
Underwriting can often become a tedious and tiring job to complete. It is both complex and requires meticulous work and research, with only few technologies having come so far as to properly emulate the process done by professional insurance underwriters. Underwriting demands that you utilize different functions of your brain to review, assess and transcribe work, where this work essentially serves as the guideline for the insurance company to conduct their risk assessment on as well as to settle on an insurance contract.
Because of how exerting and time-consuming the process is, underwriting along with other sectors of work in an insurance company, can lead to a lack of efficiency and productivity among the company. This can reflect back into the business through slower rates of production which will eventually cost the insurance company potential profits that they could’ve earned from an efficient use of their resources.
While AI technology hasn’t been fully developed to complete the underwriting process, it has been able to simplify the process extremely. With its analytical and mathematical capabilities, AI technology can solve certain problems in minutes or even seconds, allowing underwriters to be less pressurized as well as be given the ability to work adeptly. With benefits such as these, a health insurance company that has integrated artificial technology within its business module can perfectly utilize their resources, thus leading to lower risk, less costs and greater revenue.
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